The International Monetary Fund has predicted that the global economy won’t return to pre-coronavirus levels until 2023, Politico reports. The current forecast that IMF Managing Director Kristalina Georgieva gave during a recent virtual event was that the global economy would face a -3% GDP in 2020 and a partial recovery would come in 2021.
Georgieva thinks the worst has already passed in terms of economic damage and has changed some IMF spending guidelines to emphasize that governments wisely spend as much as possible to re-energize economies.
Procurement execs have low confidence in supplier data
A new survey has revealed that many procurement and supply executives have a strong lack of confidence in their supplier data, the website Datanami reports. The survey was conducted by supplier intelligence platform Tealbook.
The survey found that 81% of executives are not confident in their supplier data, and 67% said that poor data resulted in financial losses. Additionally, 93% of the executives surveyed revealed that they had experienced negative effects of misinformation from their suppliers.
Half of electronics product launches delayed by COVID-19
A new study has revealed that 53% of electronics product launches have been delayed or canceled due to disruptions caused by the coronavirus, according to the software company Supplyframe. The study, surveying 217 decision-makers at OEM companies with 500 or more employees, was conducted by market research company Dimensional Research and commissioned by Supplyframe.
Of those surveyed, 91% said that sourcing issues were the cause of their product delays, and 95% agreed that the solution to solving these issues for components requires the integration of engineering, sourcing and partners. Additionally, 37% of those surveyed said that component costs rose due to COVID-19 disruptions, and 35% said they have been forced to rework products since some of the necessary components have since become unavailable.
U.S. factory output drops to 1919 levels
U.S. factory output slowed in April to levels not recorded since 1919 due to disruptions by the coronavirus, Bloomberg reports. Factory production levels in April dropped by 13.7% compared to March, and industrial production (including mining and utilities) dropped by 11.2% in the same time frame.
FedEx and Microsoft to track parcels in ‘near real time’
FedEx has announced a multi-year partnership with Microsoft to create FedEx Surround, a logistics solution that will provide parcel tracking in “near real time,” Supply Chain Dive reports. The program uses machine learning and analytics tools to track parcels down to the ZIP code.
The partnership will allow customers to track parcels as they move, provide opportunity for real-time intervention and offer a clear view of the supply chain. Additionally, detailed post-shipment analytics will be offered.
UK may re-evaluate food supply chain
Experts in the UK say that it has a chance to change and fix its food supply chain following lessons learned from coronavirus disruptions, The Guardian reports. The UK’s Environment, Food and Rural Affairs Committee has begun an inquiry into how COVID-19 has affected the supply chain, and how little flexibility was available should a disruption occur. The rigid structure of buying patterns saw UK retailers importing food while UK farms stockpiled produce.
Experts suggest the study will help the UK re-evaluate supply chains to make the country more self-sufficient.
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